Natwest Credit Card Repayment Calculator
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Reviewed by Calculator Editorial Team
Use this NatWest Credit Card Repayment Calculator to estimate your monthly payments, interest charges, and total repayment amount for your credit card balance. Simply enter your current balance, interest rate, and repayment term to get an accurate estimate of your repayment plan.
How to Use This Calculator
To use the NatWest Credit Card Repayment Calculator:
- Enter your current credit card balance in the "Current Balance" field.
- Enter your credit card's annual percentage rate (APR) in the "APR" field.
- Select your preferred repayment term from the dropdown menu.
- Click the "Calculate" button to see your estimated monthly payment, total interest, and total repayment amount.
- Review the results and adjust your inputs as needed to plan your repayment strategy.
The calculator uses the standard formula for credit card repayments, which takes into account the balance, interest rate, and repayment term to provide an accurate estimate.
How Credit Card Repayments Work
When you carry a balance on your credit card, you're charged interest on that balance until you pay it off. The interest is calculated daily and added to your balance, which means the total amount you owe grows over time.
The repayment calculator estimates how much you'll pay each month and the total interest you'll pay based on your current balance, interest rate, and repayment term. It uses the following formula:
Formula Used
Monthly Payment = P × (r(1+r)^n) / ((1+r)^n - 1)
Where:
- P = Current Balance
- r = Monthly Interest Rate (APR/12/100)
- n = Number of Payments (Repayment Term in months)
Total Interest = (Monthly Payment × n) - P
Total Repayment = Monthly Payment × n
The calculator assumes you make equal monthly payments throughout the repayment term. The interest rate is converted from an annual percentage rate (APR) to a monthly rate for the calculation.
Worked Example
Let's say you have a £1,500 credit card balance with an APR of 18.9%, and you want to pay it off in 12 months. Here's how the calculation works:
Example Calculation
Current Balance: £1,500
APR: 18.9%
Repayment Term: 12 months
Monthly Interest Rate: 18.9% ÷ 12 = 1.575%
Monthly Payment: £1,500 × (0.01575(1+0.01575)^12) / ((1+0.01575)^12 - 1) ≈ £133.33
Total Interest: (£133.33 × 12) - £1,500 ≈ £120
Total Repayment: £133.33 × 12 ≈ £1,600
In this example, you would pay approximately £133.33 per month, with a total interest charge of about £120, and a total repayment amount of £1,600.